Investment in Real Estate for Wealth building

Investment in Real Estate or Property is the best option for wealth building for individuals. Real estate not only provides a sense of financial security but also the best tool for growing your fortunes. Gone are the days when people used to save money to buy house in old age. Now the scenario of finance loan has changed and lots of people in younger generation are vying to buy a house in the beginning of their careers with their savings and finance credit facility available.

However given the vast scope of issues and money involved in buying property, an analysis is required about individual investment needs which differ from person to person. For this following point should be looked into:-

Budget: Before planning to buy real estate or property, one should be aware about the amount of money or funds that can be spared for buying.

Source of Funds: The most important factor is buying a property is whether to take mortgage loan. If you have sufficient funds and no other investment seems viable, it is best to buy upfront but it is also advisable to borrow money from banks or institutions on credit. Usually all the reputed banks are giving 85 percent of purchase price provided you have the repaying capacity.

Size of property: Though growth in family is slow but as per the needs of the family, a property should be decided. It is not necessary to block all your funds in one large property. It becomes difficult to dispose off the large property instead of small ones.: One of the most important factors in buying property is the increase in future income of the individual. If there is sufficient growth in the income, a property of the higher value can be considered.

Usage: whether the property being bought is for self use or for rental income purpose.Resale value of property: One should decide to buy the property which can be disposed off easily in case of need and if you plan to invest in a better option.

Need: One also needs to prioritize whether to buy immediately or the decision can be postponed for correction in property rates.

Location: An astute investor will also buy a well-located property at a high price if the rental market is booming, since this makes it possible to rent it out for as long as it takes price to rise again.

Motives to keep in mind while investing in residential property 

The fundamental aims of any residential property investment should be to maximize yield as well as capital gains and to reduce the risk as far as possible. Property investment aimed at capital gains involves buying real estate cheap and selling it at a higher rate, thereby maximizing Return on Investment. 

Act Quickly: Despite any kind of slowdown in economy, the value and price of property always increases and if a decision is delayed, it may not be possible for an individual to buy at a later stage. Therefore in terms of property timing the market is not advisable. 
What are all the important documents one should check before buying any property?

While purchasing a property you have to look at the approved layout plan, approved building plan, ownership documents, carryout title search, etc. Most importantly, one should ensure that property is free from all encumbrance and legal issues.

If you take care of cited points, investment in real estate can be rewarding and best wealth builder.


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